Imported Security Paper Used in the Printing of Postage Stamps of the Bureau of Post is Subject only to the 10% Compensating Tax

July 28, 1980 BIR RULING NO. 112-80 The Acting Postmaster General M a n i l a S i r : This refers to your letter dated May 8, 1980 requesting exemption from payment of the sales tax on the imposition by the Bureau of Posts of security papers. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Under Section 23 of P.D. No. 1177, all units of government, including government owned or controlled corporations, shall pay income taxes, customs duties and other taxes and fees as are imposed under revenue laws. In view thereof, and considering that the aforesaid security paper is being used in the printing of postage stamps which is in connection with the function of the Bureau of Post in providing postal delivery service to the mailing public, said imported article is subject only to the 10% compensating tax, pursuant to Sections 199 and 204, both of the Tax Code of 1977, as amended. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner